Similar situation in a Babe Ruth All-Star Tournament a couple of years ago. Opposing coach calls time and goes out to the mound, infield comes in to the mound. I have a man on third we are tied, it's the last inning with one out and one of my better hitters coming to the plate.
Other coach finishes his antics and walks off the field, infielders return to their positions and the pitcher steps inside the magic circle and walks to the top of the mound and bends over like he is taking signals from the catcher.
My player on third steps off and yes you got it, third baseman has the ball and tags my player out. UMP let's it stick, we go to extra innings and lose the game on that call.
The bad part is I knew the other coach and needless to say I lost my cool big time.
OH well we live and learn and I can tell you one thing, balk or no balk I have never been burned on that play again.